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The U.S. should both extend the tax credits for renewable energy and increase energy efficiency standards to significantly drive down overall energy use through 2040, according to the Energy Information Administration. Extending the renewable-energy tax credits "generally lead to lower estimates for overall energy consumption, increased use of renewable fuels particularly for electricity generation and reduced energy-related carbon dioxide emissions," EIA said.

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The US could double its total installed renewable energy capacity to almost 500 gigawatts by 2040 under the Clean Power Plan, according to the Energy Information Administration. The report said the US would likely continue to ramp up its installed renewable energy capacity without the CPP, but only to 400 GW by 2040. The EIA added that US wind generation growth until 2022 would be incentivized by the wind energy Production Tax Credit.

Natural gas from shale, among other alternative energy sources, has contributed to a drop in carbon dioxide emissions, according to the Energy Information Administration. "Overall, the fuel-use changes in the power sector have accounted for 68% of the total energy-related [carbon emissions] reductions from 2005-15," the EIA said.

The U.S. wind and solar energy sectors have helped nonhydro renewables to have a higher output than hydropower for eight months straight through April, according to the Energy Information Administration. Aside from Production Tax Credits, declining costs and renewable energy standards on the nonhydro side, a drought in certain states such as California contributed to the decline in power generation from the hydro sector. The EPA forecasts that, "by 2040, nonhydro renewables are projected to provide more than twice as much generation as hydropower."

Newly installed U.S. wind capacity could reach a record 12,000 megawatts this year as developers race to complete their projects in case the wind-energy Production Tax Credit is not extended by Congress, according to a report by the Energy Information Administration. Wind is on track to account for 45% of overall additions this year, outpacing all other energy sources, including natural gas, which accounted for the most capacity additions in the past two years, the report showed.

Biofuel use is projected to increase from 1.3 quadrillion BTUs in 2011 to 2.1 quadrillion BTUs in 2040, according to the Energy Information Administration's Annual Energy Outlook. Biofuels will account for 5.8% of overall liquid-fuel consumption by 2040, down from last year's outlook due to weaker-than-expected adoption of flex-fuel vehicles, a smaller gasoline pool and a reduced outlook for cellulosic-biofuel output, EIA said. "If smart, market-based policies like the RFS are maintained, advanced biofuels will continue to succeed and grow," said Novozymes North America President Adam Monroe in response to the report.